Self cert used to provide an ideal solution for those who find it difficult to confirm their income in the traditional way required by conventional mortgage lenders, for example three years’ accounts or confirmation of income via payslips, etc.
With a self certified mortgage (also known as non status, self declaration, self certificate), borrowers would declare their income to a lender without having to provide proof. The lender would then carry out credit checks to assess your suitability. The decision rests around the confidence the lender has in the borrower’s ability to keep up regular repayments of the loan. However, these products have now been completely withdrawn following concerns from the financial regulator over the lack of income verification. Platform, part of the Cooperative bank was the last remaining significant player to pull out in 2009.
In today's mortgage market, people with non standard employment circumstances are treated as second class citizens by the overwhelming majority of lenders. While 9 to 5 employees have access to an array of products and providers, the self employed and contractors have a much limited offering from a handful of providers. There are lenders who are more approachable and they use different methods to assess your creditworthiness, which means you may be welcomed with open arms - but interest rates with a specialist provider are likely to be higher than mainstream products.
The key is getting professional advice from an independent mortgage broker has access to the whole of the mortgage market in the UK including specialist lenders who don't deal with the general public directly. Whether you're a first time buyer, or looking to move to your next property, an independent advisor will locate the best deals for you. Simply complete our no obligation enquiry form and an expert mortgage advisor will get back to you.